On Wall Street, the Dow Jones index fell for the sixth consecutive day, as it remains unclear when the Fed will begin to reduce the stimulative monetary measures that have long supported the rise in stock prices.
The Dow Jones weakened by 105 points, or 0.70 percent, to 14,897 points, while the S&P 500 slid 0.58 percent to 1,642 points, and the Nasdaq index fell 0.38 percent to 3,598 points.
The decline of the Dow Jones index for the sixth day in a row, which has not been recorded since July of last year, is a result of investor uncertainty regarding when the Fed will start to reduce its $85 billion monthly government and mortgage bond purchase programs.
The parts of the minutes from the Fed’s July meeting released yesterday did not provide a clear answer to that question. Almost all central bank leaders agree that it is not yet time to reduce stimulus, and only a few believe that some reduction should happen soon.
“The minutes did not tell us much. They showed us that the Fed leaders, like all of us, are confused because there are no clear signals from the economy, which is growing, but not fast enough. However, I think it is clear that the Fed will not hit the brakes on stimulus, but will only reduce the gas. The question is, however, by how much,” says Erik Davidson, director at Wells Fargo Private Bank.
